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Capital Gains Exclusion Calculator

IRS §121 excludes $250K of gain ($500K married joint) on sale of primary residence — if you've owned and used it as primary residence 2 of last 5 years. This calculator sizes the exclusion and taxable portion.

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Taxable gain (after exclusion)

$0

Excluded gain

$308,000

Total gain

$308,000

Max exclusion for status

$500,000

Tests passed

Yes

How the math works

$650K sale − $42K expenses − $300K basis = $308K gain. Joint filer $500K exclusion. Full $308K excluded → $0 taxable.

One of the most powerful tax breaks. Time sales: live in home long enough to meet the 2-year test, then sell tax-free. Don't blow the test by a month.

How to Use

  1. Enter sale price, basis, and filing status.
  2. Confirm ownership/use tests.
  3. See excluded gain and taxable remainder.

Frequently Asked Questions

Both tests must pass?

Yes. Ownership: owned 24 of last 60 months. Use: lived in as primary residence 24 of last 60. Can be different 24-month periods but both must be met.

Partial exclusion?

If you sell early due to job change, health, or unforeseen event, prorated exclusion based on months qualified / 24. Get CPA review before filing.

Can I use it again?

Once every 2 years from last §121 sale. Two-year 'look-back' period is automatic reset.

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